Training

Participants will gain a comprehensive understanding of airline cost structures, cost management strategies, and industry-leading practices for improving operational and financial performance. The course will equip them with practical tools to analyze key cost drivers, benchmark performance, identify cost-reduction opportunities, and support strategic decision-making.

Participants will also learn how different airline business models influence costs and revenues, explore real-world case studies on cost optimization, and understand the impact of emerging technologies such as AI on maintenance, fuel management, workforce planning, and process efficiency. In addition, they will gain insight into sustainability-related costs, environmental regulations, and the financial implications of initiatives such as CORSIA, enabling them to contribute more effectively to their organization's commercial, financial, planning, and cost-control objectives.

Commercial, revenue, strategy, financial, cost control, planning teams

• The Business Environment in the Air Transport Industry

1. Institutional and regulatory environment
2. Historic perspective, COVID-19 pandemic and recovery
3. Domestic and international markets, liberalization

• Measurement Issues in Air Transport

1. Measuring passenger traffic
2. Costs metrics and KPIs
3. Benchmarking of costs

• Airline Business Models – Features, Similarities and Differences

1. FSCs, LCCs, ULCCs, differences across business models and across markets within business models
2. Business model convergence

• Cost Reduction: Strategic Management Considerations

1. Cost reduction vs cost management
2. Cost vs value
3. Incorporating cost management into airline’s strategy

• Cost Structure in the Airline Sector

1. Direct operating cost vs indirect operating costs
2. Key cost items in the airline industry
3. Differences in cost structure across business models and regions

• Cost Management Strategies in the Airline Sector (including case studies)

1. Fuel costs
2. Labor costs
3. Ownership costs (including basic discussion of ownership versus leasing)
4. Maintenance costs
5. Infrastructure costs (airport and ANS charges)
6. Customer service costs
7. Other costs (marketing, ticket distribution, etc.)

• Implications of AI for cost management

1. Predictive maintenance
2. Fuel and labor cost optimization
3. Using Agentic AI for process optimization

• Sustainability and Environmental Considerations

1. Environmental effects of aviation
2. Cost implications of strategies to reduce environmental impact
3. Economic instruments to manage aviation emissions
4. CORSIA and its cost implications